At the midpoint of a downward-sloping linear demand curve, elasticity would be:
A)inelastic
B)elastic
C)unit elastic
D)perfectly elastic

Question

Quizplus · Accepted Answer

At the midpoint of a linear demand curve, the elasticity is always unit elastic. This is because at that point, the percentage change in quantity demanded is equal to the percentage change in price, resulting in an elasticity of 1.

At the Midpoint of a Downward-Sloping Linear Demand Curve, Elasticity